Subsidizing Sprawl

Economic Development policies that deprive the poor of transit and jobs.

Economic development subsidy programs—such as property tax abatements, corporate income tax credits and low-interest loans—were originally justified in the name of poverty reduction. Initiated as far back as the 1930s and accelerated in the 1950s, many of these programs were targeted to older areas and pockets of poverty that needed revitalization.

But over time, more and more of the 1,500 development subsidy programs nationwide have become part of the problem instead of the solution. Subsidies originally meant to rebuild older urban areas are being perverted into subsidies for suburban sprawl. Wal-Mart and other big box retailers are getting subsidies that allow them to simply pirate sales from existing merchants. Upscale residential and golf course projects are getting subsidies from programs originally designed to serve low-income neighborhoods.

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